Rule 1:Keep your emotions out of your investments
Don’t get carried away with the market going up or going down, that is just the nature of the beast. Slumps don’t last forever, they are cyclical, but that also applies to times of high profitability.
During a boom investors are frequently full of high energy, falsely believing that the good times will roll on forever. Likewise during downturns doom and gloom pervades the market and confidence is lost. Understand that the property market moves naturally and each boom sets us up for the next downturn. Letting your emotions drive your property investments is a guaranteed path to disaster.
Rule 2: Invest using a system
The way to thrive in the property market is to have a system and patience is an investment virtue. Experts agree and solid research shows that well-located Australian properties have doubled in value every 8-10 years.
Well-located areas in which to invest do not mean the most expensive, or the cheapest. It means a place where people would like to live, so your property has great re-sale value. What areas near you have a special appeal or a good transport system? Are you near a university or an area appealing to young families? Are you near a naturally beautiful recreational area such as a beach, lake or river?
Remember two property fundamentals: buy the best property you can afford in a proven location and buy a property below its intrinsic value in an area with good long-term capital growth.